In crypto investing and trading, technical and fundamental analysis are two key approaches used to make informed decisions. Here’s a quick breakdown of both:
1. Technical Analysis (TA)
Focus: Price charts, patterns, indicators, and volume.
Key Tools:
Candlestick patterns (e.g., doji, hammer)
Support & resistance levels
Trend lines & channels
Indicators like RSI, MACD, Bollinger Bands, Moving Averages
Volume analysis
Purpose:
Predict short-term price movements
Identify entry/exit points
Commonly used by day traders and swing traders
2. Fundamental Analysis (FA)
Focus: The intrinsic value and long-term potential of a crypto project.
Key Elements:
Whitepaper (what problem it solves, use case)
Tokenomics (supply, distribution, utility)
Team & advisors
Partnerships & ecosystem
Community strength
On-chain data (e.g., wallet activity, staking, network health)
Regulatory environment & news
Purpose:
Understand a project's long-term viability
Used for long-term investment decisions
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